The Programme Business Case Joe Flanagan Director of Investment Policy & Appraisal NHS Wales Stefan Sanchez Director, Value People
Brief overview to best practice! ROAMEF the key Strategic planning framework Programme management lifecycle Types of programmes Programme management principles Programme management products Programme Management Business Case
What is ROAMEF?
Rationale Objectives Appraisal Monitoring Evaluation The ROAMEF framework Evidence Based Policy BUSINESS CASE Feedback IMPLEMENTATION
Internal or external business environment (political, economic, sociological, technological) Influence and shape Strategies, policies, initiatives and targets Define, scope and prioritise Programmes Initiate, monitor and align Projects and related activities Deliver and implement New or transformed business operations, services and capacity Outcomes achieved and benefits realised
Programme Management MSP Lifecycle Identifying a programme Defining a programme Governing a programme Managing a portfolio Managing benefits Closing a programme
Programme Management Principles Managing the Change Process Organisation and leadership Benefits management Stakeholder management & communications Risk management Programme Planning & control Business case management Quality management
Some MSP Products Programme Mandate Programme Brief Vision Statement Blue print Prog. Business Case Project portfolio Risk Management Programme Plan Benefits realisation plan Trigger and context Outline concept Better future Feasible future state Evidence base Required Outputs Managing Reality Delivery schedule Delivering outcomes
Programme Business Case There may be different options for achieving target improvements or changes in business operations, in which case these should be explored in terms of timing, content, risk and benefits The business case is developed by iteration through stages of formulation and analysis.
Programme Business Case In defining a programme, the business case should be developed in tandem with early iterations of the blue print, programme plan and benefits realisation plan the business case is an aggregation of information from these and other sources. Developing the business case alongside the blue print enables the programme to select the most cost effective combination of projects...
Five Case Model Strategic Case Economic Case Commercial Case Financial Case Management Case Programme fit & case for change Optimum choice of projects & critical path Procurement & commercial strategy Funding & affordability Governance and delivery arrangements
Strategic Case Strategic fit Case for change Alignment with other programmes SMART Programme Investment objectives Existing arrangements Business needs Potential scope Programme Benefits & Risks Programme Constraints & dependencies
Economic Case Long list of options Short list of options Preferred option Programme options: Scoping Solution Delivery Implementation Funding CBA & MCA Net Present Value Sensitivity analysis Best public value
Commercial Case Procurement strategy Required services Suppliers implementation Potential risk sharing Payment mechanisms Key contracts Cross cutting Collaborative Economies of scale Use of frameworks Outputs Market Public and private Charging & pricing Standard or new
Financial Case Capital & revenue consequences Sources of funding Financial benefits (CRB) Income & Expenditure Balance sheet treatment Whole life costs (financial appraisal) Who? What? Impact? Whose?
Management Case Programme arrangements Programme plan RPA assessment Change management Specialist advisers Benefits realisation Risk management Contingency plan Roles, responsibilities, governance & reporting Delivery VH,H,M,L Plan Who? Plan/register Plan/register Plan B
The Options Framework JF Dimensions: Service Scope coverage Service Solution infrastructure and spend Service Delivery service provider Implementation phasing tranches modular - projects Funding ( ) sourcing
Identifying the Preferred Way ForwardJF The Options Filter WHAT Identify options for Scope HOW Solution options that meet Scope Delivery options for best Solution(s) WHO WHEN Implementation options Funding
MSP Review Criteria Is the programme (still) affordable is there sufficient funding? Is the outcome (still) achievable is there a realistic assessment of the organisation s ability to cope with the scale of change required? Does the programme (still) demonstrate value for money are the benefits and cost of realising them in the right balance? Have the options been considered is the programme s portfolio (still) the appropriate, or optimum, way of achieving the desired outcome(s) the critical path for deliver of projects?
Conclusions & recommendations Adopt ROAMEF and make use of guidance Carefully appraise your choice of programmes & projects and critical path Adopt best practice - MSP and Gateway 0 s Streamline the process through the use of programme business cases Understand return on spend? Undertake post evaluation (Gate 5)
Case Study Fictional Example JF The Options Framework for long-listing and the Options Filter for selection of the shortlist The small country of Bangalo has 4 principal cities where economic activity is focused Workers travel into the cities each day City A is the largest and economically most significant, followed by cities B, C and D respectively The Ministry has developed a transport strategy to improve the road network between these cities UNCLASSIFIED
JF Spending Objectives To facilitate economic growth by: reducing travel time between the principal cities of the country (A, B, C and D) by 20% by 2018 Reducing congestion and increasing the capacity of road network Reducing the cost of travel to business and the public UNCLASSIFIED
JF Status quo Very poor quality roads Low capacity Very congested Long journey times Flow of workforce into commercial centres severely limited
Programme Do minimum Intermediate Do maximum JF Scope Service Solution Link up city A with city B 200km Link up city A with city B and city C 300km Refurbish existing Refurbish existing + new route Link up city A with city B, city C and City D 400km Completely new route Service Delivery Local contractor National contractor International contractor Implementation Phased - 3 years Phased - 2 years Project A to B Project B to C big bang - 1 year Funding capital Mixed economy Private finance (PPP) UNCLASSIFIED